It was bought by a neighbouring dairy farmer to incorporate into his business.
The Heddon Bush farm which had been in the Mathieson family for 97 years, sold for $35,000/ha effective which was at the upper end of price expectations for that sort of property, PGG Wrightson Invercargill agent David Henderson said.
Values for dairy properties had been holding at $42,000 to $47,000/ha for better quality land and $30,000 to $35,000 for second tier despite a decrease in sales activity, he said.
A crowd of about 75 people, mainly locals, turned out for the auction.
“Three parties took an active part in the auction, putting up a total of 24 bids, before a dairy farming neighbour held firm for the successful bid.
“He has indicated that he will incorporate this farm into his existing dairy operation,” Henderson said.
The auction was consistent with the underlying strength of the Southland rural property market, which remained heavily influenced by the dairy sector.
“Dairy farms, including those with potential for conversion such as this one, plus those that are suitable for dairy support are selling well throughout the whole country, including Southland.
“Recent challenges around the Fonterra payout, drought and the 1080 scare have had minimal impact on demand, which continues to exceed supply across most farm types.
“As a consequence, anyone who offers rural property to the market is likely to receive a favourable reception from willing buyers,” he said.
